. >> enterprise law requires a kfc china or walmart china or a wow way to allow for the existence for a communist party committee within the organization. like the other companies, they allow for that existence. the communist party committee doesn't have any interaction with or influence on our business operation. >> both companies continue to insist their equipment is safe and poses no threat to u.s. tell wh telecom structures. joining us is director of global risk analysis for asia pacific. dean, are these concerns the u.s. is raising valid? >> well, i think some of them are. if you looked at the report, there were a number of issues that were raised. ip loss, protection of intellectual property, trading with sanction country including iran, business practices. but really the one underlying all of this explicit or otherwise, implicit, is the security of the actual systems that wow way or zte might be selling in to the united states. and that really comes back to a trust factor and transparency of the organizations themselves. which they've been trying for many years now to improve,